An investor paid $582,500 for a studio unit in Rushcutters Bay, a stone’s throw away from parks, cafes and Sydney Harbour.
The tiny home at 10/16-18 Roslyn Gardens had a price guide of $500,000. Despite measuring just 33 square metres, it did not deter the half dozen bidders, including first-timers, investors and mature-aged owner-occupiers.
It was one of 527 homes scheduled to go under the hammer on Saturday in Sydney. By evening, Domain Group recorded a preliminary auction clearance rate of 66.1 per cent from 384 reported results, while 81 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate.
An opening bid of $500,000 started the auction and the price went up in varying bids, between $15,000 and $500, as all registered buyers had a go at nabbing the keys.
It sold to an Australian investor who lives abroad and plans to live in it as their Sydney bolthole when they move back to the country. The reserve was $520,000.
BresicWhitney Inner East’s Brigitte Blackman said the direct underbidder was a first home buyer from Narooma.
The auction crowd at 10/16-18 Roslyn Gardens in Rushcutters Bay.Credit: Dion Georgopoulos
“There were first-timers with the support of their parents, a mature owner-occupier and some investors,” Blackman said. “This was an above-average competition for a studio because it ticked a lot of the boxes. Those sort of properties, in this market, are doing really well.”
The building was north facing, included a balcony, was well maintained, had low strata levies and was near parks, the harbour and amenities.
Blackman said short-term letting was also permitted in the building, which was another drawcard for investors.
“I couldn’t fault it. If the property didn’t have all those things it would not have had much competition and it may not have even sold. There are a lot of buyers, but they’re cautious too,” she said. “The market is patchy and property dependent.”
The home last sold for $222,000 in 2004, records show.
Rushcutters Bay’s median unit price rose 25.9 per cent to $840,000 in the year to June on Domain data.
In Redfern, a rare 443 square metres of land sold as two separate but adjacent homes were up for grabs as part of a deceased estate.
The two-bedroom terrace at 50 Kepos Street, which had a guide and reserve price of $1.3 million, was auctioned off first. It opened bang-on the guide as six of the 10 buyers, who were a mix of builder-developers and local owner-occupiers, placed bids on the run-down home.
The 107 square metre property sold to a developer from the area for $1.81 million.
Meanwhile, some of those who missed out went on to register to bid on the neighbouring three-bedroom house at 54 Kepos Street, which had a price guide of $2.4 million, and went under the hammer immediately after.
Bidding for the 336 square metre property started at $2 million and went up in varying increments as seven of the 10 buyers placed offers, until it sold for $3,805,000 to Redfern upgraders. The reserve was $2.4 million.
McGrath Surry Hills’ Mark Foy said while there were some first home buyers attempting to purchase with the help of their parents, most were vying for the two homes for their redevelopment potential.
“It is quite an unusual offering. That’s what spurred the interest. Most people were buying it to either flip it or live in it,” Foy said.
He said the owners of the second home would spend a pretty penny renovating the home.
“They’ll build an amazing home. I wouldn’t be surprised if they spend $2 million plus on the renovation.”
Redfern’s median house price rose 15.1 per cent to $1,825,000 in the year to June.
In Lane Cove, a young family upgrading from south Sydney paid $4.3 million for a four-bedroom house at 42 Parklands Avenue.
Seven buyers — all young families upgrading from units and townhouses — registered to bid on the home, which had a price guide of $3.6 million. The reserve was $3.95 million.
Belle Property Lane Cove’s Patrick Lang said the house, which was built in the 1950s, was turned into a Federation-style home by the sellers.
He said the upsizing market was “massive” and many were looking to upsize to houses close to good schools and the CBD, but there was a lack of stock.
The home last sold for $2,658,000 in 2015, records show.
Lane Cove’s median house price rose 10.4 per cent to $2.65 million in the year to June.